There have been a lot of activities in a number of US states, and a number of them have already legalised some or other forms of gambling on their territory, and there are even states where certain forms of online gambling have been legalised. We have reported on a number of initiatives.
Last week we reported on the new sports betting licences in Colorado, and this week we have an update on the situation. On the other hand, there are states where previous initiatives have reached a standstill. For instance, the launch of sports betting in Washington was delayed towards the end of March. Also in March we reported on the decision of Virginia to legalise sports betting and other forms of casino gambling.
In addition to the update on Colorado, as mentioned above, we also have an update regarding Virginia and this state’s approach towards sports betting and its legalisation.
Colorado sports betting market to be worth $6 billion
New Jersey legalised sports betting a while ago and it didn’t come as a surprise that this measure seriously boosted that state’s tax revenue. In fact, this state was the leader behind the initiative to overthrow the PASPA which effectively banned the legalisation of sports betting in states where it hasn’t been legalised previously.
Since sports betting in New Jersey started growing, it became evident that other states might also consider the idea and perhaps introduce sports betting if possible. The residents of Colorado had a chance to decide on whether they want sports betting in their stated and they voted in favour of the proposal last year in November.
The plan is for the launch to take place in May this year, and as of now, there are no plans to delay the start and the state gaming commission, called Limited Gaming Control Commission has already been issuing licences to operators that are supposed to be offering sports betting services in the state. It is expected that the industry will see as much as $6 billion wagered each year, with about $40 gathered as tax by state authorities. The operators’ expenses and incomes would amount to about $400 million.
If we consider that the New Jersey sports betting market is worth $4.6 billion, whereas Nevada’s betting yield amounts to $5.3 billion, Colorado is set to become the largest online sports betting market in the country.
Virginia betting bill to be amended
Virginia is another state looking to legalise sports betting, but the Governor asked for the proposed law to be amended before it can be passed. Many were surprised when it was announced that Virginia is considering legalising sports betting, seen as the state was quite hostile towards most forms of sports betting, excluding horse racing. The current piece of legislation looks to tax sports betting at 15% with and a total of 10-12 betting licences are supposed to be issued. The state lottery will be regulating sports betting in the state and betting on college sports and events that take place outside Virginia will be permitted.
Licensing fees will be set at $250K for the initial three-year period, with a $200K to for each subsequent period of three years or more.